Bitcoin Forum

Josh Rossi from bitfinex on the "manipulation" that resulted in the drop to $451. The failed attempt at a long squeeze.

"Some people have questioned the validity of margin, and we want to definitively put those baseless claims to rest. This was not the result of margin calls, stop orders, forced liquidations or any other type of leverage. We had approximately 650 bitcoins sold as the result of margin calls, out of a total amount of sales during this time of around 9000 coins. That is roughly 7%. Hardly, the cause of the drop in price."

http://www.reddit.com/r/BitcoinMarkets/comments/2dohjg/im_josh_rossi_from_bitfinex_here_to_talk_about/

Some people may not have been wiped out... they might have pulled out seeing the storm coming. Simple evac.

According to bitcoincharts, last 2 days BFX volume is only 42.7k BTC for a total of $21.6 mil USD.  Total swap fell by about 10 million, so half of that is leveraged longs dumping.

Or what was maliciously dumped was leveraged longs that were opened long before (and still in the green), along with borrowed BTC they used to short. This way they maximize profit. The OTHER longs that were forced closed were only 650btc.

OP: Josh Rossi from Bitfinex

looking at the drop in longs, i would lean towards many positions stopped out if they weren't liquidated. he's pretty vague about stops, and people on TV were saying they got stopped out at the bottom (surprise, surprise :P). but it does look like the selloff coins were held on margin. clearly much of the coins sold were leveraged long. my guess is the distribution in base cost is weighted to the upside....

Lol definetly not

Even accounts that have been forced to sell their positions likely have not been wiped out but rather incurred losses on their positions. It would be reckless for bitfinex to wait until an account has zero equity to close a position as the closing of a position would likely cause the prices to drop somewhat further, potentially causing negative equity in the account.

No, it's a correction.  The OP wrote "John" the person's name is "Josh"

Nobody is saying that the OP hyphymikey is working for Bitfinex.

Do you think Ethereum has anything to do with this? Too many people now are implying that. It's pretty scare if it's true. Think about it, all the IPOs after the Ethereum IPOs will be seen automatically as scams now.

No, I read somewhere that the Etherium IPO coins remain untouched.

This is all news to me and that is quite a interesting accusation Mr Rossi is addressing.  Makes me wonder if this type of thing happens more often then many of us realize.  I hate to admit it but I doubt I'd even have a clue this type of thing could be taking place. 

Fixed. Sorry about that!

Proof?

sarcasm voice

proof the Ethereum IPO coins are untouched

https://blockchain.info/address/36PrZ1KHYMpqSyAQXSG8VwbUiq2EogxLo2?filter=1

they never would wait until zero equity. the stated requirement at 2.5:1 was (still is? not sure) 13%. so you get liquidated when your equity is at that point, and likely end up with slightly less.

Around 4000 BTC has moved from the wallet. Can assume it is sold.

Even if the wallet is untouched, they can still short a large amount of BTC on bitfinex while using the wallet as collateral.

Lol this...

Leveraged longs have obviously been cleared out.

The way I'm reading his reddit post its either fake or they are trying their hand at a little PR cover up

Of course the real forced liquidations is quite low with 650 BTC. However, I imagine many longs have closed or reduced their leveraged long before the actual margin call came in.

And at what point might a leveraged long trader have got in before $450-$500 and have their position still 'in the green', especially with compound interest to be paid on the position?

As usual, someone from Bitfinex opens their mouth and nothing but utter shite spews out. At least they are consistent/reliable/predictable.

Because people are selling.

I still have longs opened from $380 with calls at $220. I won't close them out until the bubble pops. It's worth it to me because I don't pay interest until the long is closed, you just borrow more to cover the interest. My mining gear alone covers the newly borrowed interest, so my accounts will not go under due to borrowing more. When we break 720ish I will double up those longs, and again above the next resistance, and again, and again. So if I'm doing it you can damn well bet manipulators are doing it, and have longs opened from the bottom they set back at 340. You can see on BFXdata a ton of shorts were used to reach that bottom, and from there the longs started rising.